The increase hopes to help smaller, experienced developers that will benefit from extra leverage and assistance from a bank lender.
The news comes after the bank announced an increase in its maximum LTV to 75% for all loan sizes, up to £15m, earlier this month.
Alongside the changes was a reduction of minimum ICRs to pre-Covid-19 levels for all deals, and a recommencement of lending on holiday lets.
David Alcock, managing director of development finance at Hope Trust Bank said: “We recognise the day-to-day issues smaller builders face in securing viable sites and navigating a challenging planning system.
“There are many pressures associated with being a small housebuilder right now, so we are trying to help where we can.
“While we do lend up to £15m, we’ve taken the decision to provide extra leverage on loans up to £6m by increasing LTGDV up to 65% in this space.
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Matt Lenzie from Commercial Mortgages Broker commented: “it’s great to see Hampshire Trust bank increasing their LTGDV’s, demonstrating a return to pre-COVID levels, HTB continue to push the boundaries with their funding proposition for both bridging finance, development finance and portfolio finance.”